In the last couple weeks, Redfin raised its real estate estimate of a condo property I own from $360k in Nov 2017 to $601k in Jan 2018.
I pointed out the issue to Redfin, noting that it appears their algorithm is miscalculating estimates for many many units in this condo building. These units are usually 1050 sq ft, and Redfin lists them all as 2800 sq ft.
I stressed to Redfin that children’s chances for financial aid to afford higher education opportunities can be negatively shaped by inaccurate overestimates. Redfin basically told me to go to hell and gave me the address of their lawyer.
Has anyone else experienced this problem, or something similar?
How concerned should I be?
Multiple times I have heard financial aid officers at Profile colleges state at info sessions that they may look at Redfin or Zillow to gut check what a family reports and to inform a final award.
If this is a second home, you are like as not getting any FA. If the condo is worth 300K and it is your second property, your FA is going to be impacted. If it is worth 600K, that times 2 LOL.
If there are “many, many units” in your condo building, I assume that every once in a while a unit is sold. What are the recent sale prices on units that are similar to yours? That’s probably your best indication of value, and if it was me I would have no problem using (and defending the use of) a similar value for my unit.
And most real estate agents are happy to do a quick walk-through of your property and give you a “back of the envelope” projection- in writing- of what they would list and sell the property for today based on comps and trends.
You do not need to rely on Redfin- get yourself more accurate pricing information, get it in writing, and be prepared to send it in if your estimate gets questioned.
Zillow in some places makes no distinction between waterfront property and the same house 1/2 mile from the water- even though the differential can be huge. So get your own number and don’t worry about it.
Thanks all. Many many recent sale prices of course do not bear this estimate out. But Redfin is ignoring the comps I gave them along with an error I pointed out in their data which leads to erroneous calculation of sq ft per unit.
One of the recent comps ($340k) I gave was even sold on the Redfin platform.
I realize that I can get an appraisal on the value of the condo (my first home, btw), but I distinctly heard AOs/Fin Aid Officers at several colleges – can’t remember which ones but I’m thinking maybe Smith, Williams, Kenyon – state that they sometimes use these real estate engines as due diligence when reviewing aid applications.
Right now the same property which is estimated by Redfin as $601k is $321k on Zillow. Nice work, Redfin.
I agree that Redfin does not give half a hoot about fin aid. But maybe they should. If they don’t, it could jeopardize the financial flexibility people who’ve demonstrated themselves to be buyers and could be potential sellers of real estate.
After this experience emailing back and forth for the last couple weeks I can’t imagine I’d consider selling a property through Redrum or Redfin or whatever.
And you shouldn’t give half a hoot about Redfin. Seriously. If, under the miniscule chance that a financial aid officer checks Redfin against whatever property value you report on financial aid documents and you get challenged, it sounds like you have plenty of valid data available to back up your position.
The college isn’t going to base financial aid based on the Redfin web site. They are going to look at the value you report on the FAFSA or Profile and if they question that value, they will write to you and ask for documentation. Your purchase price (what you paid); any appraisals done more recently in connection with a refinance; and curent tax valuation would be the most important documentation.
It’s possible that they look at sites like Zillow or Redfin as part of their review process; but they are going to contact you if they have questions.
A financial aid officer is going to check anything that looks way off (a house in Atherton CA with an estimated value of $250K or a coop in Park Slope Brooklyn for $400K) but they aren’t going to stick a vacuum cleaner into your bank account and suction out the money without substantial correspondence back and forth. And you will have an opportunity to provide your own data.
There are indeed coops in Park Slope “worth” 400K even if the typical property is worth upwards of 1.2 million. There are properties with tenants in them who have a rent controlled lease for $385 a month so selling the apartment means calculating the actuarial downside of having to outlive the existing tenant (who you cannot evict by law) until you can charge market rent (probably $3500/month).